Investment targets early-stage ventures developing technology to reduce environmental impact across the built environment

HDFC Capital has partnered with Brigade Enterprises and Gruhas PropTech LLP, committing Rs 20 crore to the Earth Fund, which invests in early-stage companies developing technology for the built environment. As part of the arrangement, HDFC Capital has also taken a minority stake in Zoiros Projects Private Limited, the entity managing the fund.

The Earth Fund, anchored by Brigade Group and Gruhas, positions itself as a specialist platform that supports ventures focused on construction technology, building performance, material innovation and other systems intended to improve efficiency and limit environmental impact. The fund works with start-ups in areas such as automation, energy management, and circular approaches to waste and material use, and aims to connect them with developers and operators for real-world deployment.

Sector analysts note that the Indian real estate industry faces increasing regulatory and market pressure to address energy use, emissions and waste. Buildings account for a large share of national resource consumption, and compliance with evolving standards requires investment in new systems, data-driven management and lower-carbon materials. The proptech ecosystem has expanded in response, although early-stage companies continue to face barriers in scaling due to capital intensity and slow adoption cycles.

HDFC Capital said its investment is aligned with its broader strategy of backing firms that improve productivity and sustainability in housing and construction. The company said its H@ART platform, set up in 2019, was intended to identify and support such ventures.

Earth Fund general partners said the partnership is expected to strengthen the platform’s ability to work with start-ups on commercial deployment, while giving them access to financing and industry networks. They said demand for technology-driven solutions in building design, construction and management is likely to rise as urban development expands and sustainability standards tighten.

Industry observers argue that technology adoption in construction remains uneven, but note that rising costs, land constraints and energy concerns are pushing developers to examine new solutions. The Earth Fund partnership reflects a broader shift towards investment vehicles that seek to combine capital, technical expertise and market access in an effort to accelerate adoption.